Qualify on your real performance.

How does a P&L loan work?

A P&L loan uses a signed profit-and-loss statement covering the last 12 or 24 months, prepared by a CPA, IRS enrolled agent, CTEC-registered preparer, or tax attorney. The net income on that statement, multiplied by your ownership percentage and divided by the months covered, becomes your qualifying income. The preparer generally has to be the person who prepared or filed your most recent business tax return. This is not a form your bookkeeper can print out of QuickBooks.

Some programs require no bank statement analysis at all. Others ask for two months of business statements as a reasonableness check. If the P&L claims $90,000 a month of net income and the account cycles $30,000, the file will not survive that comparison.

Who is a P&L loan built for?

Business owners whose deposit patterns would misrepresent them. Multi-entity structures where money legitimately moves between companies. Businesses using merchant processors or factoring, where revenue is netted before it reaches the bank. Owners taking large irregular draws. Anyone whose books are clean and professionally maintained but whose bank activity would take an underwriter three weeks and forty conditions to untangle.

How much down payment does a P&L loan require?

• 15% to 20% down on a primary residence at the stronger credit and loan-size tiers; 20% to 25% for lower FICO, cash-out, or investment property.
• Maximum loan-to-value generally tops out around 80%, sometimes 85% at the very best tier, lower than the bank statement program.
• 3 to 6 months of PITIA reserves, scaling up with loan size.
• Credit standards are tighter here than elsewhere in the Non-QM group: a 680 floor, no more than one 30-day mortgage late in the past 12 months, and 36 months since any bankruptcy, foreclosure, short sale, or deed-in-lieu.

What documents does a P&L loan require?

• A signed and dated 12- or 24-month P&L on the preparer's letterhead, covering an unbroken period ending within the last 60 days.
• The preparer's credentials: license or PTIN number, and a letter confirming they prepared or filed your most recent business return.
• Business existence and ownership: license, articles, Secretary of State record, plus your ownership percentage in writing.
• Two months of business bank statements, required by many programs as a consistency check against the P&L.
• Two months of personal asset statements for down payment and reserves.
• Government photo ID, signed application, purchase contract, insurance quote.

What are the advantages of a P&L loan?

• By far the fastest self-employed file to assemble and underwrite
• Handles multi-entity and complex structures that break deposit averaging
• No 24 months of statements to gather, redact, and explain
• Net income on a well-kept P&L often beats a deposit average
• No tax returns, no transcripts

What are the trade-offs of a P&L loan?

• You need a licensed preparer willing to sign, and many decline on liability grounds
• Higher credit floor and lower maximum LTV than a bank statement loan
• The tightest seasoning and housing-history rules of the Non-QM programs
• A reasonableness check against deposits can undo the whole file
• Fewer lenders offer it, so pricing is less competitive

Why do P&L loans get declined?

• The preparer is not the preparer of record, is not licensed, or will not attest in the exact language the program requires.
• The P&L is unsigned, undated, stale, or covers a broken period.
• Deposits do not support the P&L. The single most common decline once a reasonableness check is run.
• Ownership percentage is not documented, or the P&L covers an entity you only partly own.
• A 30-day mortgage late inside the last 12 months, which most P&L programs will not waive.
• A credit event inside the 36-month window.
• The business has been operating under two years, or changed structure recently enough that the history is broken.

What does a typical P&L loan file look like?

An owner of three LLCs: a staffing agency, a small property management company, and an equipment leasing arm. Money moves between the entities constantly, which makes any deposit average meaningless. His CPA files all three returns and signs a 24-month consolidated P&L showing about $41,000 a month of net income against his ownership share. He is refinancing his primary residence to pull out $200,000 for a fourth venture. FICO 761, a $1.1 million loan at 70% LTV, 6 months of reserves, clean housing history.

About these figures: the ranges on this page describe the non-QM lending market as of September 2026. They are not quotes, offers, or commitments to lend. Guidelines, rates, and program availability vary by lender, property type, and borrower profile, and they change often. Your terms are set after a full review of your credit, income documentation, assets, and the property. Not tax or legal advice. Equal Housing Opportunity.